Financially Savvy Kittens on Honoring the Budget

Kittenomics #7

Living on a budget can be difficult. Even when you put into place categories like Food, Clothing, Eating Out, and Frivolous, determining how to categorize your spending can determine how much money you’ll actually save.

This kitten gets the most out of her budget by having clear distinctions between her budget categories that are needs and those that are wants. She knows that a restaurant cooked salmon dinner is a want that comes from the smaller Eating Out category rather than the larger one of Food and a mummy cat Halloween costume is Frivolous not Clothing.

She sat down with her family and decided what fits in each budget category. As a result, she knows the difference between Home Supplies and Home Decor, Food and Eating Out, Health and Beauty, and more. She doesn’t cheat herself out of saving money by assigning wants to her needs budget. She also doesn’t fool herself in the grocery store into thinking that just because some essential groceries are on the bill that she needs everything in her cart. She saves money by allowing her budget to curb her impulses.

Megan Russell+ is the Chief Operating Officer for Marotta Wealth Management. She studied Cognitive Science at the University of Virginia and now specializes in explaining the complexities of economics and finance. Megan loves formal logic, creative writing, and kittens.

Quote of the Day

Adam Smith’s key insight was that both parties to an exchange can benefit and that, so long as cooperation is strictly voluntary, no exchange can take place unless both parties do benefit.— Milton Friedman